Personal Contract Purchase (PCP) Car Finance

PCP is a type of car finance that gives you options at the end of your agreement. You can choose to buy the car, give it back, or trade it in for a new one.

Unlike Hire Purchase, your PCP loan doesn’t have to cover the full cost of your car during the term of the loan. Therefore, your monthly payments may be cheaper. You simply finance the vehicle's depreciation over the agreed finance term and have a guaranteed future value (balloon payment) to pay at the end of the agreement, if you want to keep the car.

Keep in mind that terms and conditions will apply. You’ll need to agree to a set mileage, and not damage the car to avoid paying extra charges at the end of your contract.

PCP might be suitable for individuals, businesses, and could be accessible to people with a range of credit circumstances. It could be a great choice for you if you like to change cars regularly, don’t drive a lot of long distances, and want to keep your monthly payments low.

How much you’ll pay each month may depend on:

• The size of your deposit
• The car you’ve chosen
• The cost of your car
• The interest rate
• The number of miles you drive
• How much the lender expects the car to be worth at the end of your agreement

It’s as easy as 1, 2, 3…

PCP finance may be available to a wide range of applicants through our panel of trusted lenders. Acceptance isn't guaranteed, but we'll do our best to find you a deal that works for you.

You can apply for PCP if you:

• Are a UK resident aged 18 or over
• Are employed
• Are self-employed
• Are a contract worker
• Have bad credit
• Have a limited credit history
• Don’t have a deposit

Want to check your eligibility? Apply today - no impact on your credit score. We use a soft search to give you a quote. If you proceed, a hard search will be conducted which may impact your credit score.

Please note that car age limits may apply for some lenders, and approval is subject to status and eligibility.

Let's say you're looking at a car priced at £12,000. It's expected to drop in value (depreciate) throughout the life of the agreement based on both how long you expect to keep the car for and how many miles you expect to drive per year.

Here's what you'd pay, based on 19.5% APR (fixed) over a 4 year loan term with an annual mileage of 8,000, for illustration purposes only:

• Amount of credit: £12,000
• Loan term: 48 months
• Monthly payments: £268.66
• Optional final balloon payment: £5,890

At the end of the agreement, the total you would have paid if you choose to return the car will be £12,627.02 (your monthly payments). If you make the final balloon payment and keep the car, your total comes to £18,517.02.

Compare your car loan options: HP vs PCP

Feature	Hire Purchase (HP)	Personal Contract Purchase (PCP)
Automatically own the car at the end
Optional final balloon payment
Requires initial deposit	Optional	Optional

It may be possible to get PCP car finance with us if you have bad credit. A bad credit score doesn't automatically rule you out, and we work with a wide panel of trusted lenders, some of which specialise in helping people with bad credit get on the road, subject to status.

When lenders assess a bad credit PCP application, they'll consider more than just your credit history. They also look at factors like your income, affordability, and whether you're putting down a deposit.

As a broker, we have access to multiple trusted lenders, which may improve your approval chances compared to applying directly to a single lender. Different lenders have different criteria, and we search across the panel to try and find you a match.

There are no guarantees, and interest rates may be higher for bad credit applicants. But we'll do our best to find you a deal that works.

Ready to see your options? Get a quote today and see your options.

Getting your car finance sorted with us is straightforward. Here's what to expect:

1. Get a quote online — Fill in a few details and get a personalised quote with no impact on your credit score. We use a soft search to give you a quote. If you proceed, a hard search will be conducted which may impact your credit score.
2. We search our lender panel — We aim to match your application against our panel of lenders to find the best fit for your circumstances.
3. Get a decision — Once you have approval in principle, you'll get an idea of what you can borrow and what your monthly payments could look like.
4. Choose your car — Search from over 95,000+ cars in our member’s area or enter the reg of the car you’ve got your eye on.
5. Drive away — Once everything is agreed and signed, you're ready to pick up your car! It’s that simple.